Additional Formats

Affected Code

Senate File 174 - IntroducedA Bill ForAn Act 1relating to the manufacturing and equipment sales and 2use tax exemption, and including effective date provisions.3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:1 Section 1. Section 423.3, subsection 47, paragraph d, 2subparagraph (4), Code 2019, is amended to read as follows:3(4)(a)“Manufacturer” means aany of the following:4(i)Abusiness that primarily purchases, receives, or holds 5personal property of any description for the purpose of adding 6to its value by a process of manufacturing with a view to 7selling the property for gain or profit.8(b)“Manufacturer” includes9(ii)Acontract manufacturersmanufacturer. A contract 10manufacturer is a manufacturer that otherwise falls within the 11definition of manufacturer, except that a contract manufacturer 12does not sell the tangible personal property the contract 13manufacturer processes on behalf of other manufacturers.14(iii) A nonprofit blood center.15(c)(b)“Manufacturer” does not include persons who are not 16commonly understood as manufacturers, including but not limited 17to persons engaged in any of the following activities:18(i) Construction contracting.19(ii) Repairing tangible personal property or real property.20(iii) Providing health care.21(iv) Farming, including cultivating agricultural products 22and raising livestock.23(v) Transporting for hire.24(d)(c) For purposes of this subparagraph:25(i)“Business” means those businesses conducted for 26profit, but excludes professions and occupations, and excludes27 nonprofit organizations that are not nonprofit blood centers.28(ii)“Manufacturing” means those activities commonly 29understood within the ordinary meaning of the term, and shall 30include:31(A) Refining.32(B) Purifying.33(C) Combining of different materials.34(D) Packing of meats.35(E) Activities subsequent to the extractive process of -1-1quarrying or mining, such as crushing, washing, sizing, or 2blending of aggregate materials.3(iii)“Manufacturing” does not include activities occurring 4on premises primarily used to make retail sales.5 Sec. 2. EFFECTIVE DATE. This Act, being deemed of immediate 6importance, takes effect upon enactment.7EXPLANATION8The inclusion of this explanation does not constitute agreement with9the explanation’s substance by the members of the general assembly.10This bill relates to the manufacturing and equipment sales 11and use tax exemption. 12The bill amends the definition of “manufacturer” and 13“business” in Code section 423.3(47) to include a nonprofit 14blood center. As a result, a nonprofit blood center is 15eligible for the manufacturing and equipment sales and use tax 16exemption for sales described in Code section 423.3(47). 17The bill takes effect upon enactment.-2-jm/jh

Comments?webmaster@legis.iowa.gov
(Please remember that the webmaster does not vote on bills.
Direct all comments concerning legislation to State Legislators.)